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During this holiday season, we all have seemingly endless lists of people to buy presents for and a shortage of good ideas. Would Grandma like the cheese slicer, or the scarf? Should Aunt Martha get the platter, or should it go to Cousin Michael? What in the world does Dad want? We have limited dollars to spend on presents and want to make sure that the gifts we buy are well-received.

But what if they aren’t? Let’s use the classic “sweater from Grandma” example. Every year without fail, Grandma gives you the ugliest sweater in the store. It is the wrong size, with sleeves draping four inches after where your fingertips end. There are bells in places you didn’t even know bells could be placed on a sweater. Actually, you didn’t even know that bells could go on sweaters in the first place. You can’t imagine being seen in public donning the gift, but you end up wearing the sweater to the family Christmas party, instead of the outfit you got yourself and were excited about. It makes Grandma happy, even though it goes against what you really want. After Christmas, the sweater goes straight to the bottom of your closet.

Of course, it was considerate of Grandma to think of you and get you a sweater. No doubt it proves that she loves and cares about you. However, she does not necessarily know what your taste is. Perhaps her money would have been better spent if she asked you what your clothing size was or where you liked to shop. However, in this low-stakes situation, it really is the thought that counts. Even though the sweater is not to your liking, Grandma was trying her best. Does the same hold true for philanthropy?

One of the dominant ideas about philanthropy is to think of it as a gift. The person who has the money to give is the primary determinant of where it will go. While this type of donation is certainly generous, it faces the same risks as the sweater from Grandma: it may not reflect the desires and needs of those on the receiving end.

In this reality of limited resources, foundations, individual donors and gift-givers alike should take into account as much as possible the perspective of the recipient. Ask them what they need most and allocate resources toward actions, gifts and programming in response to these needs. Unlike the situation with Grandma, the stakes are higher when philanthropic donations are given with the “it’s the thought that counts” mentality. With limited resources allocated to the nonprofit sector, every foundation grant matters. When grants are given to programming that does not adequately respond to the needs of a particular community, it can distract from the most pressing needs.

As NCRP has long asserted, philanthropy should respond to the needs of the people with the least wealth, opportunity and power. The key to carrying out this type of grantmaking is to listen to underserved communities and the nonprofits that serve them and understand how their unique situation informs what type of support would best serve their needs. Without factoring in these important perspectives, foundations and donors face the risk of allocating resources to programming that might be ineffective.

Ultimately, grants should not be seen as gifts. Rather, they should be the result of a strong partnership between foundations and the communities they seek to serve. Through this relationship, grantmakers are able to exchange ideas with nonprofit organizations and community leaders, thereby settling the best way that their partnership can benefit each party.

Foundations must make sure that their grants are the right fit for the communities they are trying to impact. If, like you, nonprofits must wear the ill-fitting sweater to the holiday party instead of what they actually want, they are shifting the mission of their organization to serve the foundation, instead of the people who benefit from their work. By engaging in partnership, foundations can ensure that their own priorities line up with those of their community.

Lia Weintraub is field assistant at the National Committee for Responsive Philanthropy (NCRP). Follow @NCRP and @LiaWeintraub on Twitter.

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